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When Not To Remortgage

When Not To Remortgage

Little equity

If you owe your lender more than the property is worth, then you’re in what they call ‘negative equity’. It can be difficult to remortgage your house when you’re in negative equity - unless you have separate funds to repay the difference.

However, don’t just assume this is impossible. Everyone’s circumstances are different, just like every lender’s criteria is different, so it’s always worth speaking with a mortgage adviser to consider all your options.

Finances have dropped

Lenders now have to see evidence of your income against your outgoings and carry out thorough credit checks. So if your income has dropped since you last took out your mortgage (perhaps you only work part-time now or your partner has retired) the lender might be more cautious about lending you the money.

Already on a low rate

It might be the case that you’re already on a low rate and you don’t need to move to another one. Perhaps at that moment in time, there is no better rate than the one you’re on.

Large early repayment charges

If you pulled out of your current mortgage deal before the term is up, it could well come with a hefty early repayment charge which might make you think twice about switching. However, some lenders might be willing to waive the charge if you’re sticking with them and are just moving to a new deal.

By speaking to a mortgage adviser, we can talk through all your different remortgaging options to make sure you have all the facts before making a final decision that is right for you and your family.

You may have to pay an early repayment charge to your existing lender if you remortgage. Your home may be repossessed if you do not keep up repayments on your mortgage. There will be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.

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